Landlord increasing rent based on RPI

mkoder · 20 March 2017 at 12:43PM

Hi,

My landlord wants to increase my rent this year based on RPI...

"Your landlord has confirmed he is happy for you to renew your tenancy for a further 12 months, he will however be looking for an increase in line with the current RPI rate (2.6%) making the new rent x"

Is it fair & reasonable to base rent increases on RPI?

Thanks

Ed

theartfullodger · 20 March 2017 at 12:47PM

You do not have to agree to any renewal or rent increase. Simply do nothing & tenancy continues, same terms as before, month by month, for ever.

What if anything does existing tenancy say about rent increases?

westernpromise · 20 March 2017 at 12:48PM

It is, but this is supposing the rent you are paying now is below market. If the market rent for where you are is lower than what you're paying, you should point this out to your landlord. You could move and pay less, and if he lets that happen, he will incur a void, will likely receive less rent from the next tenant and that tenant may not be as reliable a payer as you.

mkoder · 20 March 2017 at 12:53PM

This has come about because they say its part of the annual renewal, and...

"There is a clause in the tenancy agreement outlining that the rent can be increased by the current RPI rate upon renewal of the tenancy." (Thats from the agent)

I'm checking the tenancy agreement now and can't see any mention of RPI but might not have found it yet.

theartfullodger · 20 March 2017 at 12:55PM

mkoder wrote: »

This has come about because they say its part of the annual renewal, and...

"There is a clause in the tenancy agreement outlining that the rent can be increased by the current RPI rate upon renewal of the tenancy." (Thats from the agent)

I'm checking the tenancy agreement now and can't see any mention of RPI but might not have found it yet.

If it does say RPI increase (and sensibly worded..) then you've agreed to it and are bound by it.

If it doesn't way RPI increase then you can decline any kind offer of an increase & landlord can try to force increase using "S13" notice and/or evict you, for no reason at all, using a "s21" notice. (Both courtesy Thatcher...)

Pixie5740 · 20 March 2017 at 12:58PM

Annual renewal annual mcschmual. There is no need to sign a new tenancy agreement every time a fixed term ends. Well I say there's no need the only need is to fill the letting agencies coffers but there's no legal reason why you have to do it. You can just start a periodic tenancy. See Ending/Renewing as AST for further information.

How does the new proposed rent compare to similar rental properties in the area? You are free to accept the new proposed rent, refuse to pay it or negotiate a different amount with your landlord. I don't see what's unfair about using RPI. See Rent Increases for further information.

G_M · 20 March 2017 at 1:16PM

As pixie says above (thanks for linking my posts pixie).

OP, you can

* agree & sign
* negotiate a different rent and sign
* refuse to sign, move to a periodic tenancy at current rent (but bear in mind loss of security, and risk of S13 rent notice)
* say/do nothing, move to a periodic tenany at current rent (but bear in mind loss of security, and risk of S13 rent notice)
* find a cheaper property

Lots of options with pros & cons.

But possibly a bit premature asking for advice before checking your current tenancy agreement. Why do people never read what they sign, either before or after........?

mkoder · 20 March 2017 at 1:26PM

Thanks G_M

"Why do people never read what they sign, either before or after........?"

I think sometimes we all struggle to read through long dry documents about things which they don't think (and 99%) of the time aren't relevant / don't impact them. Most of us are busy and tired working people, and reading many pages of small print can be really hard work. I would have scanned through it at the time of signing, but digesting the impact of any of the clauses at that point in time is a whole different matter.

I wanted to get a general opinion in any case on whether using RPI as a tool to bring in an increase is fair & reasonable, so thanks for everyone's input

Thanks

theartfullodger · 20 March 2017 at 1:46PM

mkoder wrote: »

..................I wanted to get a general opinion in any case on whether using RPI as a tool to bring in an increase is fair & reasonable, .........

There's is it "Fair and reasonable" and then there's is it "Legal". It's certainly legal: However, if it is fair & reasonable is a long, long debate (IMHO, probably not fair 'n reasonable). Just think, when interest rates dropped like a stone (2008 etc...) do you think all those "fair and reasonable" landlords dropped the rents, correspondingly? Well, I didn't, for one.

Expecting anything regarding property or capitalism to be "fair & reasonable" is likely to lead to disappointment.

mkoder · 20 March 2017 at 1:52PM

Indeed, well said

ThePants999 · 20 March 2017 at 3:15PM

G_M has missed an option, which surprises me. You can choose not to sign anything and hence move to a periodic tenancy, but start paying the increased rent anyway. This will significantly reduce the chances of the landlord deciding to evict you, while not committing you to a 12 month tenancy. Of course, if you WANT 12-month security, forget this option

PLEASE READ BEFORE POSTING

Landlord increasing rent based on RPI

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